Generate a restraint of trade / non-compete clause reasonable in scope, duration and geography for Hong Kong employers, consistent with common law principles.
Non-Compete Agreement Generator (Hong Kong)
A non-compete agreement (restraint of trade clause) restricts an employee, contractor, or business seller from competing with a business for a defined period, area, and set of activities after the relationship ends. This free Hong Kong non-compete generator produces restraint of trade clauses for senior employees and business sale agreements, drafted to satisfy the common law reasonableness test that Hong Kong courts apply to any restraint of trade. It is designed for Hong Kong employers protecting client relationships or trade secrets, and for buyers and sellers structuring a business sale. Unlike some other markets, Hong Kong has no statutory cap on non-compete duration, so enforceability turns entirely on whether the clause is no wider than reasonably necessary. Use it to draft a restraint that is proportionate in duration, geography, and scope, reducing the risk a court will strike it down entirely.
Frequently asked questions
What is a non-compete agreement?
A non-compete agreement (or restraint of trade clause) is a contract term that stops a person from working for a competitor or starting a competing business for a set period, area, and scope of activity after leaving a role or selling a business.
Are non-compete clauses enforceable in Hong Kong?
Yes, to the extent reasonably necessary to protect a legitimate interest such as trade secrets or client connections; Hong Kong courts apply the common law restraint of trade doctrine.
Is there a statutory limit on non-compete duration in Hong Kong?
No. Hong Kong has no statutory cap, so duration, geographic scope, and restricted activities are assessed case by case for reasonableness.
What makes a restraint of trade clause reasonable in Hong Kong?
Courts weigh duration, geographic area, and scope of restricted activities against the legitimate interest being protected, such as trade secrets or client connections.
Can I use a non-compete for a business sale in Hong Kong?
Yes, restraints protecting the goodwill purchased in a business sale are generally viewed more favourably by Hong Kong courts than employment restraints.
What is the difference between a non-compete and a non-solicitation clause?
A non-compete stops someone from working for or starting a competing business, while a non-solicitation clause only stops them from approaching former clients or staff.
What happens if a non-compete clause is found unreasonable in Hong Kong?
A Hong Kong court will typically declare the clause void and unenforceable rather than rewrite it, so overly broad drafting carries real risk.